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Specimen For Qiuz & Assignment .........................................

Mercer Investments acquired $120,000 of Jericho Corp bonds paying 6% interest semiannually. It later sold $40,000 of the bonds. The document provides instructions to record the initial purchase, accrued interest, interest receipts, and bond sale. It also provides a similar second case involving bond purchases and sales by Lance Co. and instructions for the journal entries. The remaining questions involve recording stock purchase, dividend receipts, and stock sales for various companies.

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Umair Amir
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142 views

Specimen For Qiuz & Assignment .........................................

Mercer Investments acquired $120,000 of Jericho Corp bonds paying 6% interest semiannually. It later sold $40,000 of the bonds. The document provides instructions to record the initial purchase, accrued interest, interest receipts, and bond sale. It also provides a similar second case involving bond purchases and sales by Lance Co. and instructions for the journal entries. The remaining questions involve recording stock purchase, dividend receipts, and stock sales for various companies.

Uploaded by

Umair Amir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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PunjabCollegeGujranwala

ADP-IT

ACCOUNTING 11

Project

Date: 29-06-2019 Total Marks: 20

1- Mercer Investments acquired Rs. 120,000 Jericho Corp., 6% bonds at par


value on September 1. 2010. The bonds pay interest on September 1 and
March 1. On March 1, 2011, Mercer sold Rs.40, 000 par value Jericho
Corp. bonds at 102.
Journalize the entries to record the following:
a. The initial acquisition of the Jericho Corp. bonds on September 1, 2010.
b. The adjusting entries of 4 months of accrued interest earned on the 6--
Jericho Corp. bonds on December 31, 2010.
c. The receipt of semiannual interest on March 1, 2011.
d. The sale of Rs. 40000 Jericho Corp. bonds on March 1, 2011, at 102.

2- Lance Co. purchased Rs.36000 of 6%, 10 year Bergen County bonds on


July 12, 2010, directly from the county at par value. The bonds pay
semiannual interest on May 1 and November 1. On December 1, 2010,
Lance Co. sold Rs.14000 of the Bergen County bonds at 102 plus Rs.70
accrued interest, less an Rs.300 brokerage commission.
Provide the journal entries for:
a- The purchase of the bonds on July 12, plus 72 days of accrued interest.
b- Semiannual interest on May 1 and November 1.
c- Sale of the bonds on December 1.
d- Adjusting entry for accrued interest of Rs. 220 on December 31.
3- The following bond investment transactions were completed during 2010
by Torrence Company.
Jan. 21. Purchased 30, Rs.1000 par value government bonds at 100 plus 20
days accrued interest. The bonds pay 6% annual interest on June 30 and
January 1.
June 30. Received semiannual interest on bond investment.
Sept. 5. Sold 12, Rs.1000 par value bonds at 98 plus Rs.134 accrued
interest.
a- Journalize the entries for these transactions.
b- Provide the December 31, 2010, adjusting journal entry for semiannual
interest earned from the bond coupon.

4- On Feb. 17, Asher Corporation acquired 3000 shares of the 100000


outstanding shares of Dan Co. common stock at Rs28.90 plus commission
charges of Rs.300. On July 11, a cash dividend of Rs 0.95 per share was
received. On December 4, 1000 shares were sold at Rs. 36, less commission
charges of Rs. 125.
Record the entries for:
a- The purchase of the stock.
b- The receipt of dividends.
c- The sale of 1000 shares.
5- The following equity investment related transactions were completed by
Lance Company in 2010:
Jan. 12. Purchased 1800 shares of Baxter Company for a price of Rs.56.50
per share plus a brokerage commission of Rs.90.
April 10. Received a quarterly dividend of Rs.0.25 per share on the Baxter
Company investment.
June 3. Sold 1200 shares for a price of Rs 46 per share less a brokerage
commission of Rs 65.
Journalize the entries for these transactions.

6- Plumbline Tech Corp. manufactures surveying equipment. Journalize the


entries to record the following selected equity investment transactions
completed by Plumbline during 2010:

Feb. 2 Purchased for cash 900 shares of Devon Inc. stock for Rs.54 per
share plus an Rs450 brokerage commission.
April 16 received dividends of Rs0.25 per share on Devon Inc. Stock.
June 17. Purchased 600 shares of Devon Inc. stock for Rs65 per share plus
an Rs300 brokerage commission.
Aug 19 Sold 1000 shares of Devon Inc. Stock for Rs. 70 per share less an
Rs.500 brokerage commission. Plumbline assumes that the first
investments purchased are the first investments sold.
Nov 14. Received dividends of Rs.0.30 per share on Devon Inc. Stock.

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